New Jersey-2018-A489-Introduced

An Act concerning development fees and amending P.L.2015, c.19.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 74 of P.L.2015, c.19 (C.5:10A-74) is amended to read as follows:

74. a. After the adoption of the plan by the commission pursuant to subsection f. of section 73 of P.L.2015, c.19 (C.5:10A-73), the commission may, by resolution, provide for the assessment and collection of development fees on developments within the district as provided hereunder.

b. Development fees assessed by the commission shall be based upon the growth and development forecasts contained in the plan and shall be levied in order to raise only those amounts needed to accomplish the transportation projects set forth in the plan and allowable administrative costs. Those fees shall be assessed based upon the formula or formulas contained in the resolution and shall be uniformly applied, with such exceptions as are authorized or required by sections 69 through 81 of P.L.2015, c.19 (C.5:10A-69 through C.5:10A-81).

c. A formula or formulas adopted by the commission by resolution shall reflect a methodology which relates the use of land to the impact of the proposed development on the transportation system, including, but not limited to: vehicle trips generated by the development; the square footage of an occupied structure; the number of employees regularly employed at the development; the number of parking spaces located at the development; or any combination thereof.

d. The resolution may provide for credits against assessed development fees for payments made, or expenses incurred, which have been determined by the commission to be in furtherance of the district transportation plan, including, but not limited to, contributions to transportation improvements, other than those required for safe and efficient highway access to a development, and costs attributable to the promotion of public transit, walking, bicycling, or ridesharing.

e. The resolution may either exempt or reduce the development fee for specified land uses which have been determined by the commission to have a beneficial, neutral, or comparatively minor adverse impact on the transportation needs of the district.

f. The resolution may provide for a reduced rate of development fees for developers submitting a peak-hour automobile trip reduction plan approved by the commission under standards adopted by the commission. Standards for the approval of peak-hour automobile trip reduction plans may include, but need not be limited to: physical design for improved transit, ridesharing, and pedestrian access; design of developments which include a mix of residential and nonresidential uses; and proximity to potential labor pools.

g. The assessment of a development fee shall be reasonably related to the impact of the proposed development on the transportation system of the district and shall not exceed the development's fair share of the cost of the transportation improvement necessary to accommodate the additional burden on the district's transportation system that is attributable to the proposed development and related allowable administrative costs.

h. A resolution shall be sufficiently certain and definitive to enable every person who may be required to pay a fee to know or calculate the limit and extent of the fee which is to be assessed against a specific development.

i. Upon the adoption by the commission of a resolution pursuant to subsection a. of this section, a separate assessment for off-site transportation improvements within the district shall not be made by the State, a county, or a municipality except as permitted pursuant to sections 69 through 81 of P.L.2015, c.19 (C.5:10A-69 through C.5:10A-81).

j. A development fee shall not be assessed for any low and moderate income housing units which are constructed pursuant to the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) or under court order or settlement.

k. At least 30% of any development fees collected in accordance with this section shall be returned to the municipality where the development, for which a particular fee was collected, is located to be used for transportation related projects within [the] that municipality [where the development, for which a particular fee was collected, is located].

(cf: P.L.2015, c.19, s.74)

2. Section 77 of P.L.2015, c.19 (C.5:10A-77) is amended to read as follows:

77. a. A resolution adopted by the commission pursuant to section 74 of P.L.2015, c.19 (C.5:10A-74) shall provide for the establishment of a transportation planning district fund under the control of the chief fiscal officer. All monies collected from development fees, except for the portion of fees returned to a municipality pursuant to subsection k. of section 74 of P.L.2015, c.19 (C.5:10A-74), shall be deposited into the fund, which shall be invested in an interest-bearing account. Monies deposited in the fund shall be used to defray project costs and allowable administrative costs. On or before February 1 of each year following the enactment of P.L. , c. (pending before the Legislature as this bill), the commission shall return the portion of a development fee set aside pursuant to subsection k. of section 74 of P.L.2015, c.19 (C.5:10A-74) to the municipality where the development, for which a particular fee was collected, is located. A proposed transportation related project undertaken by a municipality utilizing development fees collected in accordance with section 74 of P.L.2015, c.19 (C.5:10A-74) shall not require approval from the commission and the commission shall not require the municipality to make an application for the return of the portion of a development fee to which the municipality is entitled pursuant to subsection k. of section 74 of P.L.2015, c.19 (C.5:10A-74).

b. Every transportation project funded, in whole or in part, by funds from a transportation planning district fund shall be subject to a project agreement to which the relevant entities are parties. The expenditure of funds for this purpose shall not be made from a transportation planning district fund, except by appropriation of the commission and upon certification of the chief fiscal officer that the expenditure is in accordance with a project agreement entered into pursuant to this subsection or is otherwise a project cost and has the approval of the commission.

(cf: P.L.2015, c.19, s.77)

3. This act shall take effect immediately.

STATEMENT

This bill clarifies that the New Jersey Sports and Exposition Authority must automatically return a portion of the development fees it collects under the "Hackensack Meadowlands Transportation Planning District Act of 2015" to the municipality where the development, for which a particular fee was collected, is located.

The "Hackensack Meadowlands Transportation Planning District Act of 2015" requires that at least 30 percent of any development fee assessed by the commission must be returned to the municipality where the development, for which a particular fee was collected, is located to be used for transportation related projects within that municipality. Under this bill, the New Jersey Sports and Exposition Authority would be required to return the portion of the development fee to which a municipality is entitled on or before February 1 of each year. The bill further establishes that the municipality receiving a portion of the development fee may use that money to undertake transportation related projects without submitting its plans to or obtaining approval from the New Jersey Sports and Exposition Authority.